he owner of Maumee Ford-Volvo wants to study the relationship between the age of a car and its selling price. Listed below is a random sample of 12 used cars sold at the dealership during the last year. Car Age (years) Selling Price ($000) 1 11 11.0 2 7 9.0 3 16 3.0 4 19 3.0 5 9 5.0 6 7 11.6 7 10 9.6 8 17 7.0 9 14 7.0 10 19 4.8 11 5 10.6 12 5 8.6 Click here for the Excel Data File Determine the regression equation. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.) Estimate the selling price of an 6-year-old car (in $000). (Round your answer to 3 decimal places.) Interpret the regression equation (in dollars). (Round your answer to the nearest dollar amount.)
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
The owner of Maumee Ford-Volvo wants to study the relationship between the age of a car and its selling price. Listed below is a random sample of 12 used cars sold at the dealership during the last year.
| Car | Age (years) | Selling Price ($000) | ||||||||
| 1 | 11 | 11.0 | ||||||||
| 2 | 7 | 9.0 | ||||||||
| 3 | 16 | 3.0 | ||||||||
| 4 | 19 | 3.0 | ||||||||
| 5 | 9 | 5.0 | ||||||||
| 6 | 7 | 11.6 | ||||||||
| 7 | 10 | 9.6 | ||||||||
| 8 | 17 | 7.0 | ||||||||
| 9 | 14 | 7.0 | ||||||||
| 10 | 19 | 4.8 | ||||||||
| 11 | 5 | 10.6 | ||||||||
| 12 | 5 | 8.6 | ||||||||
Click here for the Excel Data File
-
Determine the regression equation. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)
-
Estimate the selling price of an 6-year-old car (in $000). (Round your answer to 3 decimal places.)
-
Interpret the regression equation (in dollars). (Round your answer to the nearest dollar amount.)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
